Finding 61231 (2022-002)

Significant Deficiency in Internal Control Over Compliance / Compliance Finding Reference Number: 2022-002 Criteria: Assistance Listing Number 93.498 - COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Condition: The Center is required to prepare and submit complete and accurate Period 1 Provider Relief Fund reporting to the U.S. Department of Health and Human Services (HHS). The reporting is to be prepared using accurate financial information and submitted by the established deadlines. The Center elected to obligate Period 1 Provider Relief Funds to lost revenues utilizing Option 2 based on 2020 budgeted revenues. Cause: The Center experienced an increase in turnover of accounting personnel in addition to constraints arising as a result of COVID-19, which delayed the completion of the financial statements for fiscal year 2021. On the Period 1 submission, the Center?s actual net revenue from patients for certain quarters did not agree to underlying support, due to delayed financial reporting. Effect or Potential Effect: On the Period 1 submission, the Center?s actual net revenue from patients for certain quarters did not agree to underlying support, due to delayed financial reporting. This resulted in an overstatement of lost revenues. Subsequent to the Period 1 submission, the Center identified additional expenditures attributable to COVID-19 which will be reported in future submissions along with the correction of lost revenues to mitigate any impact to the program. Recommendation: We recommend performing timely reconciliations of general ledger accounts and completion of monthly financial statements to ensure the accuracy of amounts reported to internal and external users. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan.